The European Bank for Reconstruction and Development (EBRD) is supporting Azerbaijan’s agribusiness sector by investing in the green expansion of agricultural producer H&M Agro, Report informs referring to the EBRD.

The senior secured loan, equivalent to $2 million in local currency, will help the company to expand its hydroponic greenhouses.

“The funds will be used to install efficient and environmentally friendly greenhouses in Salyan city, which will help H&M Agro to achieve higher yields and protect the environment through the efficient use of land, water and fertilizers. This will boost H&M Agro’s competitiveness, enabling it to diversify its customer base internationally.

H&M Agro is one of the first agricultural producers in Azerbaijan to establish commercial trade relationships with the Gulf countries. In this way, the company aims to diversify its export markets.

Azerbaijan is one of the largest exporters of fruits and vegetables in the region. The sustainability of its agribusiness sector is increasingly important as the country diversifies away from the predominant oil and gas sector.

The EBRD is a leading institutional investor in Azerbaijan. Since the start of its operations there in 1992, the Bank has invested more than 3.75 billion euros in 184 projects across different sectors, including finance, corporate, infrastructure and energy, with most of those investments in private enterprises.